In South Africa's residential property market, the total value of properties has soared to over R6.8 trillion as of February 2024, new data from Lightstone Property shows.
Surprisingly, while estates represent only 6.6% of the total property stock, they command a significant 18.1% of its overall value. Conversely, sectional title properties constitute 12.9% of the stock but contribute 15.7% to the market's value.
Despite freehold properties dominating the market with 80.5% of the stock, they hold a comparatively lower share of the total value at 66.3%.
The average property value within an estate stands at just under R2.7 million, whereas sectional title units average at R1.1 million and freehold units at R807,000, reflecting the premium associated with estate living.
Shifts in Property Purchases
There's been notable pressure on purchases of lower-valued properties, with those below R500,000 comprising only 31% of all purchases in 2023, a significant decline from 58% in 2010.
Conversely, sales in the R500,000-R1 million bracket have remained stable at around 25-26%. The R1m-R3m range has seen a substantial increase in purchases, rising from 15% in 2010 to 35% in 2023, indicating a shift towards higher-value properties.
Top Suburbs in Sales and Purchase Price
Gauteng's Bryanston has emerged as South Africa's top-selling suburb in both volume and total purchase price for 2022 and 2023. Sea Point in the Western Cape claimed the second spot in 2023, climbing from third place in 2022.
However, Midstream Estate in Gauteng dropped to third place in 2023. Meanwhile, Val de Vie and Fresnaye in the Western Cape, which ranked fourth and fifth in 2022 respectively, were replaced by Sibaya Coastal Precinct in KwaZulu-Natal (4th) and Sunningdale in the Western Cape (5th) for 2023.
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